FTC Influencer Guidelines 2024: Quick Guide

published on 09 November 2024

The FTC's 2024 Influencer Guidelines are cracking down on social media marketing. Here's what you need to know:

  • Be transparent: Disclose all brand relationships clearly
  • Use clear language: #ad, #sponsored, or "Paid partnership with [Brand]"
  • Place disclosures prominently: Above the "more" button on Instagram, in video and description on YouTube
  • Avoid false claims and fake engagement: Fines up to $50,120 per violation
  • Keep records: Track partnerships, content, and disclosures

Breaking the rules can lead to hefty fines and damaged reputation. When in doubt, disclose.

Platform How to Disclose
Instagram "Paid partnership" tag + disclosure in first lines of caption
YouTube Say it in video + write in description
TikTok Text on screen + say it out loud
Twitter #ad or #sponsored (put it first)

Remember: Both brands and influencers are responsible for following these guidelines. Stay honest, be clear, and keep your audience's trust.

FTC Rules Basics

FTC

The FTC has set clear guidelines for influencers and brands to keep social media marketing honest. Let's break it down:

What's an Endorsement?

It's more than you might think. The FTC says an endorsement can be:

  • A paid social media post
  • Promoting affiliate links
  • Reviewing products (even free ones)
  • Tagging brands on social media
  • Talking about products in videos or podcasts

Here's the kicker: Even tagging a brand on Instagram could count if it looks like you're giving an opinion.

Bottom line? If your content might make someone buy something, the FTC probably sees it as an endorsement.

Business Ties Matter

The FTC wants you to spill the beans on any "material connection" with a brand. That includes:

  • Getting paid
  • Getting free stuff
  • Family connections
  • Working for the brand
  • Owning part of the company

Here's a real-world example: In 2017, the FTC went after two influencers, Trevor Martin and Thomas Cassell, for promoting a gambling site they owned without telling anyone. Not cool.

Platform-Specific Rules

Different platforms, different rules. Here's the quick and dirty:

Platform How to Disclose
Instagram Use "Paid partnership" + disclosure in first lines of caption
YouTube Say it in the video + write it in the description
TikTok Text on screen + say it out loud
Twitter #ad or #sponsored (put it first)
Twitch Text on screen + say it often during stream

But heads up: Using platform tools like Instagram's "Paid partnership" tag is good, but it might not be enough. The FTC wants you to spell it out in plain English too.

Pro tip: When in doubt, disclose more. The FTC says if knowing about a connection would change how much someone trusts an endorsement, you should tell them about it.

How to Make Proper Disclosures

Influencer marketing isn't just about creating cool content. It's about being upfront with your audience. The FTC wants influencers to be crystal clear about their brand partnerships. So, let's break down how to nail those disclosures.

Making Disclosures Clear

Here's the deal: Your disclosures should be as obvious as a neon sign in a dark alley. No hiding, no sneaking, no burying them in a sea of hashtags.

Where should you put them? Front and center. On Instagram, that means above the "more" button. For video content on TikTok or YouTube, slap that disclosure right on the video itself.

And here's a pro tip: Every. Single. Piece. Of. Content. Needs. A. Disclosure. Even if you're doing a string of Instagram Stories for one campaign, each story needs its own disclosure. No exceptions.

Words to Use in Disclosures

Keep it simple, folks. The FTC has given us a cheat sheet of approved terms:

  • #ad
  • #sponsored
  • "Paid partnership with [Brand]"

Don't get creative with terms like "#sp", "#collab", or "Thanks [Brand]". The FTC isn't impressed by your wordplay.

Want a real-life cautionary tale? In 2017, influencers Trevor Martin and Thomas Cassell got in hot water with the FTC. Their crime? Promoting a gambling site they owned without clear disclosure. The lesson? When in doubt, spell it out.

Where to Put Disclosures

Different platforms, different rules. Here's your quick and dirty guide:

Platform Disclosure Placement
Instagram "Paid partnership" tag + disclosure in first lines of caption
YouTube Say it in the video + write it in the description
TikTok Text on screen + say it out loud
Twitter #ad or #sponsored (put it first)
Twitch Text on screen + say it often during stream

For Instagram Stories, use the Branded Content Tag and slap a written disclosure on each sponsored story. And make sure it sticks around long enough for your followers to actually read it.

On YouTube, don't just write it - say it out loud in your video. And for good measure, put it in the description too.

Take a leaf out of Courtney Caldwell's book. This Gymshark athlete mentions her partnership in her Instagram bio and tags each sponsored post. That's how it's done.

One last thing: Using platform tools like Instagram's "Paid Partnership" tag is great, but it's not enough on its own. The FTC wants you to spell it out in plain English too. So don't skimp on those written disclosures.

What Not to Do

Influencer marketing isn't just about knowing the right moves. It's also about avoiding the wrong ones. The FTC has drawn clear lines, and crossing them can land you in hot water. Let's break down the big no-nos.

False Claims

Don't make stuff up. Simple, right? But it's not just about blatant lies. Even stretching the truth can get you in trouble.

Take the FTC's November 2023 crackdown on health pros making shaky claims. They pointed out that people trust health experts more. So if you're an influencer with a medical background, you've got extra responsibility.

Bottom line: If you can't prove it, don't say it.

Fake Engagement

Tempted to buy some bots to boost your numbers? Don't. The FTC is onto this trick, and they're not messing around.

They've rolled out a new rule that bans fake reviews and shady marketing tactics. This includes using bots to pump up follower counts. FTC Chair Lina M. Khan put it bluntly:

"Fake reviews not only waste people's time and money but also pollute the marketplace and divert business away from honest competitors."

Break this rule, and you could face fines up to $50,120 per violation. That's a lot of cash for some fake likes.

Hidden Partnerships

In influencer marketing, honesty is key. Hiding business relationships is a big mistake that can cost you.

Just ask Kim Kardashian. In 2022, she got slapped with a $1.26 million fine for not disclosing a paid promotion on Instagram. Even the biggest stars aren't above the law.

The FTC's rules are clear: if there's a "material connection" between you and an advertiser, you've got to spill the beans. This includes:

  • Business deals
  • Family ties
  • Money changing hands
  • Free stuff

Here's a pro tip: When in doubt, disclose. It's better to be too open than to risk big fines and a damaged reputation.

Keep in mind, the FTC has sent over 90 warning letters to influencers and marketers about these disclosure rules. They're watching closely, and the penalties for breaking the rules can be harsh.

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How to Follow the Rules

Want to stay on the FTC's good side? Here's how to keep your influencer game strong and compliant:

Record Keeping

Treat your influencer work like a business. Because guess what? It is. Here's how to keep your records straight:

Use a spreadsheet to track your brand partnerships. Log the dates, terms, and what they want you to disclose. It's like a contract tracker, but way less boring.

Got a content calendar? Use it. Mark when your sponsored stuff goes live. This way, you can keep tabs on your disclosures across all your platforms.

And here's a pro tip: Take screenshots of your disclosures. It's like keeping receipts, but for your online life.

Want to level up? Try tools like Airtable or Notion. They're great for keeping all your influencer stuff in one place.

Checking Content

Before you hit that post button, give your content a quick once-over:

Is your #ad or #sponsored tag easy to spot? On Instagram, make sure it's above the "more" button. Nobody's going to tap that just to see if you're being paid.

Each platform has its own rules. On YouTube? Mention the sponsorship in the video AND the description. Belt and suspenders, folks.

Here's a fun test: Ask a friend to look at your post. If they can't tell it's sponsored in 3 seconds, you need to make it clearer.

Remember Trevor Martin and Thomas Cassell? In 2017, they promoted a gambling site they owned without telling anyone. Don't be like Trevor and Thomas. When in doubt, spell it out.

Working with Global Audiences

The internet is global, but rules aren't. Here's how to handle it:

Different countries have different rules. The UK's ASA guidelines? Similar to FTC rules, but not identical. Do your homework.

Use words everyone gets. "Paid partnership" or "sponsored by" work in most places.

Got fans who don't speak English? Consider adding disclosures in their language too. It's just good manners.

In March 2023, the UK's ASA called out some influencers for being sneaky with their Instagram Stories. Even those 24-hour posts need clear labels.

Bottom line: Be consistent. Figure out a disclosure strategy that works everywhere, then stick to it like glue.

Breaking the Rules: Consequences

The FTC isn't messing around with influencer marketing. Let's look at what happens when you cross the line and how to fix it if you do.

Recent FTC Cases

The FTC's been on a rampage against rule-breakers. Check out these jaw-dropping examples:

In 2020, Teami, LLC got slapped with a $15.2 million judgment. Why? Their influencers hid disclosures at the end of long captions. Viewers had to click "MORE" to see them. The FTC said, "Not cool."

Fast forward to 2023: CarShield and another company got hit with a $10 million fine. Celebrities like Chris Berman and Ice-T endorsed services they'd never even used. Yikes.

In November 2023, the FTC sent warning letters to twelve health influencers and two trade associations. Their sin? Poor disclosures in social media posts.

Most Common Mistakes

Want to stay out of the FTC's crosshairs? Don't make these blunders:

  1. Hiding Disclosures: Don't bury your #ad in a hashtag avalanche or at the end of a novel-length post.
  2. False Claims: Remember Teami's detox tea? They said it could treat migraines and cancer. Spoiler: It couldn't.
  3. Fake Reviews: Starting October 21, 2024, the FTC can fine you up to $51,744 per fake review. Ouch.
  4. Insider Testimonials: Having employees pretend to be regular customers? That's asking for trouble.

Fixing Problems

Messed up? Don't freak out. Here's how to make it right:

First, move fast. As soon as you realize you've broken a rule, fix it. Add those missing disclosures NOW.

Second, fess up. The FTC likes companies that come clean on their own. It's better they hear it from you first.

For serious slip-ups, you might need to issue public corrections. Get a lawyer to help with the wording.

Finally, educate your team. Set up a solid compliance program. Make sure everyone - from influencers to marketing folks - knows the rules cold.

"Playing by the rules in influencer marketing keeps your reputation clean and your wallet full." - Federal Lawyers

Special Rules

The FTC's influencer guidelines aren't one-size-fits-all. Let's look at some specific rules for different content types and situations.

Rules for Kids' Content

The FTC is serious about marketing to kids. They're targeting "stealth advertising" that mixes content and ads.

If you're making content for kids, you need to be clear about what's an ad. The FTC can hold companies responsible under Section 5 of the FTC Act for deceptive or unfair advertising to children.

Samuel Levine, Director of the FTC's Bureau of Consumer Protection, says:

"We now live in a world where kids spend many hours a day online, often in immersive environments where advertising and content are deliberately difficult to distinguish."

What should you do? The FTC suggests:

  • Keep ads separate from other content. Use clear visual and verbal signals.
  • Explain it's an ad when you introduce a product, both verbally and in writing.
  • Work with other creators to make a symbol showing when money or free stuff was involved.
  • Help kids, parents, and teachers understand digital advertising.

For younger kids, just disclosing isn't enough. The FTC wants you to avoid mixing advertising with content altogether.

AI Influencer Rules

Virtual influencers are growing, but they still have to follow the rules. Real or AI, the same guidelines apply.

The main point? Brands using virtual influencers must clearly disclose their connections. If you're using an AI-generated influencer to promote your product, be upfront about it.

Treat your virtual influencer like any other endorser:

  • Say clearly that the influencer is AI-generated
  • Disclose any connections between the brand and the virtual influencer
  • Make sure all claims by the virtual influencer are true and backed up

Just because your influencer isn't real doesn't mean the FTC won't take real action.

Affiliate Marketing

Affiliate marketing can be great for influencers, but it's full of potential FTC violations. Here's what to know:

  • Always disclose affiliate relationships clearly and visibly.
  • Put your disclosure close to the affiliate link, preferably above-the-fold.
  • Use clear language. For example:

"If you buy something after clicking this link, I might earn a commission."

  • Use the same disclosure across all platforms.
  • Don't hide your disclosure in privacy policies or terms of service.

The FTC considers an act deceptive if it misleads "a significant minority" of consumers. Even if most of your audience understands, you could still be in trouble if some don't.

When in doubt, spell it out. It's better for your wallet and your reputation.

Key Points to Remember

Sticking to FTC influencer rules isn't just about dodging fines. It's about building trust and keeping your marketing honest. Here's what you need to know:

Be crystal clear about connections

The FTC says you must tell your audience about any "material connection" with brands. This includes:

  • Getting paid
  • Free stuff
  • Family or work ties
  • Owning part of the company

94% of marketers agree: being open and real is crucial for influencer marketing success. It's not just following rules - it's about being credible.

Make your disclosures obvious

Don't use vague terms like "sp" or "collab." Instead, go for:

  • #ad
  • #sponsored
  • "Paid partnership with [Brand]"

Put these where people can't miss them. On Instagram? Stick them above the "more" button in your caption.

Know the platform rules

Each social media platform needs a different approach:

Platform How to Disclose
Instagram Use "Paid partnership" tag + disclose in first lines of caption
YouTube Say it in the video + write it in the description
TikTok Show text on screen + mention it out loud
Twitter Start with #ad or #sponsored

Breaking rules can cost you

The FTC means business. In 2020, Teami, LLC got hit with a $15.2 million judgment for hiding disclosures. In November 2023, twelve health influencers got warning letters for poor disclosure practices.

Everyone's responsible

Both brands and influencers need to follow the rules. Brands should:

  • Teach influencers about FTC guidelines
  • Check posts to make sure they comply
  • Include disclosure requirements in their contracts

Katie Brinkley, a marketing expert, says:

"Don't risk your business by ignoring the rules. Understanding and following the FTC's new guidelines protects your brand and builds trust with your audience."

Be honest about everything

The FTC also cracks down on fake claims and engagement. From October 21, 2024, they can fine up to $51,744 for each fake review. Make sure all your claims are true and backed up.

When unsure, disclose

Not sure if you need to disclose something? Play it safe and do it anyway. It's better to be too open than to break FTC rules.

FAQs

What happens if you don't follow FTC guidelines?

Ignoring FTC guidelines can land you in hot water. While the guidelines themselves aren't law, the FTC can take legal action against influencers and brands who break Section 5 of the FTC Act. This section bans deceptive advertising practices.

Here's a real-world example:

In November 2023, the FTC sent warning letters to 12 health influencers and two trade associations. Why? They didn't properly disclose their connections in social media posts about aspartame and sugar products.

Samuel Levine, Director of the FTC's Bureau of Consumer Protection, didn't mince words:

"It's irresponsible for any trade group to hire influencers to tout its members' products and fail to ensure that the influencers come clean about that relationship."

The price of non-compliance? Steep. The FTC can slap you with civil penalties up to $50,120 per violation. That means a single undisclosed sponsored post could cost you big time.

Is it illegal to not disclose an ad on social media?

In the US, not disclosing sponsored content on social media is illegal. The FTC requires influencers to be upfront with their followers when they get something that could sway their product recommendations.

Why? The FTC's job is to protect consumers. They want to keep advertising honest and prevent any sneaky practices.

Ali Talip Pınarbaşı, a Data Privacy Law Consultant, breaks it down:

"In the US, the Federal Trade Commission (FTC) is the federal agency that promotes consumer protection. The FTC requires you to inform your followers whenever you receive something of value that could influence your recommendation of a product or service."

But here's the kicker: "something of value" isn't just about cash. It could be free stuff, services, or even family connections to a brand. If it might affect how credible your endorsement is, you need to spill the beans.

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